General Court Upholds Bad Faith Cancellation of Lío Marks

In parallel decisions issued in late 2022 and recently referenced in June 2026 commentary, the General Court of the European Union upheld EUIPO rulings canceling two figurative “Lío” trademarks. The marks had been registered by a German individual for merchandise goods after the applicant visited the El Lío nightclub in Ibiza.

Evidence showed the registrant offered to sell the marks to the nightclub owners for escalating sums up to €3.5 million, with no apparent commercial use of the signs. The court found dishonest intent to free-ride on the club’s reputation, applying established factors for bad faith including knowledge of the prior sign and lack of honest commercial logic.

The nightclub owners had successfully opposed the applications earlier but pursued invalidity actions after failed settlement attempts. The General Court’s detailed summary of bad faith case law provides guidance for similar disputes involving known signs and speculative filings.

The outcome underscores EUIPO and court scrutiny of registrations made primarily to extract value from established brands.